Base metals prices on LME exhibit varied trends; stocks witness outflows

• South Korea's Q3 growth falls short of expectations
  
  
• Japan's manufacturing PMI drops on weak demand
  
  

Base metals prices on the London Metal Exchange (LME) threw up mixed trends, with aluminium witnessing the highest increase of 1.37%. Meanwhile, metal stocks at LME-registered warehouses showed negative movements, with zinc decreasing by 1.05%.

COMEX market update

Copper prices on the COMEX market decreased by 1%, settling at $9,525/tonne (t) compared to the previous close.

Indian market overview

In India's non-ferrous markets, BigMint assessed domestic copper armature scrap at INR 748,000/t ex-Delhi. Aluminium tense scrap remained stable, with ex-Delhi prices at INR 171,000/t and ex-Chennai at INR 172,000/t.

Global updates

Adani's Kutch Copper in talks with BHP for 30,000 cr deal

Gautam Adani-controlled Kutch Copper is negotiating with BHP to source up to 1.6 million tonnes (mnt) of copper concentrate annually. The deal, valued at 30,000 crore, aims to support Kutch Copper's Mundra Refinery project, positioning it as the world's largest single-location smelter with a 1 million tonne per annum (mtpa) capacity upon completion.

Hydro posts surge in earnings in Q3CY'24

Hydro, a Norwegian aluminium and renewable energy company, recently released its performance metrics for Q3CY'24. Adjusted EBITDA soared to NOK 7.37 billion from NOK 3.9 billion in the previous year, driven by rising aluminium and alumina prices. Despite weaker recycling margins and tepid demand in downstream markets, Hydro is focusing on enhancing extrusions and sustainability projects, such as the Illvatn pumped storage initiative and a partnership with Mercedes-Benz for socio-environmental development in the Amazon.

South Korea's Q3 growth stalls amid export decline

South Korea's economy grew just 0.1% in Q3 2024, significantly below the expected 0.5%. Exports fell for the first time in nearly two years, while private consumption showed a slight recovery. The Bank of Korea hinted at a potential downgrade of its GDP forecast and may consider interest rate cuts. The finance minister called for measures to address the economic slowdown.

Japan's factory activity contracts for 4th month

Japan's factory activity shrank for the fourth consecutive month in October, with the manufacturing PMI dropping to 49.0 from 49.7. Weak domestic and international demand led to falling new orders and output. The services PMI also declined to 49.3, marking its first contraction in four months. Overall business confidence has weakened, reflecting concerns over economic conditions and rising costs.

Oil prices rise

Oil prices crept higher as US crude inventories increased by 5.5 million barrels, exceeding expectations of a smaller rise. Additionally, economic activity remained stable, with a surge in hiring, influencing predictions of more modest interest rate cuts by the Federal Reserve.

Brent crude oil futures were recorded at $75.70/barrel. Meanwhile, WTI crude oil futures edged up by 1.12% d-o-d to $71.56/barrel.

Natural gas prices inch up

Natural gas prices stood at $2.39/metric million British thermal unit (MMBtu), up by 2.18% d-o-d.

Dollar index edges down

The dollar index, which measures the value of the greenback against a basket of six major currencies, hovered at 104.18, down by 0.08% d-o-d. The Indian rupee was recorded at INR 84.07 against the dollar.